Harold (Buddy) Pope's Blog
Emotion is nothing to play with, especially when you're shopping for a new house. But,it's hard not to become emotional when thinking about the place you plan to spend the next several years of your life in. And it's not just the next years of your life.
Emotional house buying can hurt for years
Popular television shows that promote the financial rewards of flipping houses can make buying and selling houses for a profit seem easy. It can also make buying a house seem hassle free, as if buying the wrong house can be corrected within a matter of months. All you'd have to do is fix the house up and put it back on the market.
The fact is that it's not that easy to get out from under a bad house purchase. In a good housing market, it can take 50 days to sell a house and another 40 days to close the deal. That's three months and what happens in a good housing market.Let the market drop and your emotional purchase could cost far more than it's worth. It could set you back years. You could be forced to remortgage your home and take on more interests. You could go from building a savings to living paycheck to paycheck.
How to know if you're about to make a badhouse purchase
Signs that you may be entering a bad, emotional house purchase start with how much you missed when you attended an open house. More information on what emotional shopping can make you miss during an open house follow. Keep reading to learn about other bad decisions that emotional house shopping could force you to make.
House reviews lack detail - You became so convinced that the second house you saw was the perfect house that you only recall four details about every other house your realtor takes you to. For example, if asked you couldn't tell a friend how close any other house you saw is to the nearest major roadway. You also don't recall if there are trees in the backyards, if the houses have an attic or if the roof shingles are metal or wood.
Over looking the house's value - Get too emotional about a house and you may avoid getting the house appraised. Why? You don't want to face the fact that the house is overpriced. You'd rather follow your gut.
Take on too much mortgage debt - Even if the house is not overpriced, that doesn't mean that the house is a good buy. A mortgage shouldn't exceed 35% of your net income. Falling in love with a house could cause you to take on a mortgage that costs more than you can afford.
Mounting maintenance problems - You haven't been in the house a year and the roof is already leaking after a hard rain. Water is damaging the walls and the floors and the water heater is starting to show signs of wear. No sooner do you fix the roof and replace the water heater does the wiring start to short circuit.
Real estate is not the market to take huge risks in if you have limited disposable income. Even if your emotions are high and you're convinced that a house is right for you,look at several houses before you buy. A good realtor might recommend that you look at seven or more houses before you buy. Compare houses, including amenities, square footage, number of entrances and exits, window sizes, age of the houses and exterior features. Be a smart, informed buyer, not an emotional buyer.